Originally Posted by amalekite

Higher prices just mean more "creative" loans and multiple signers on the mortgages

Look at how many families those mexicans can stuff in a house.. They'll keep buying 400,000 dollar houses cuz they can have 20 people living there

And the yuppies that make 100,000 a year will still buy million dollar homes on interest only... or even those supercool new 1% loans

IF the market slumps the dollar will follow... then foreigner investors will come in and pick up some deals... boosting the housing prices again

There will be some short periods of slow growth, but overall it's going to take social insurrection or government malfeasance (or both) to stop this housing boom

You must understand that this housing boom is unlike any other in history.. It is not comparable to the past because of the globalization of the world economies and massive unrestricted illegal immigration into the US

A PERFECT EXAMPLE IS KATRINA HURRICANE: 50 years ago that would have depressed the entire US economy... but today the US is so connected to the global marketplace that it barely made a "dent." When katrina happened, japan immediately responded by releasing oil reserves to keep the market steady... proving that the world had an interest in Katrina... not just the US

Point is, the US housing market is fueling world growth... It is in the world's interest to keep it going... so it will keep going... until world war 3

just an opinion